Arch Resources Inc (ARCH) Fundamental Analysis & Valuation

NYSE:ARCH • US03940R1077

Current stock price

134.83 USD
+0.94 (+0.7%)
At close:
133.13 USD
-1.7 (-1.26%)
After Hours:

This ARCH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. ARCH Profitability Analysis

1.1 Basic Checks

  • ARCH had positive earnings in the past year.
  • In the past year ARCH had a positive cash flow from operations.
  • Of the past 5 years ARCH 4 years were profitable.
  • Each year in the past 5 years ARCH had a positive operating cash flow.
ARCH Yearly Net Income VS EBIT VS OCF VS FCFARCH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 7.57%, ARCH belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
  • ARCH has a Return On Equity of 12.43%. This is amongst the best in the industry. ARCH outperforms 80.95% of its industry peers.
  • ARCH has a better Return On Invested Capital (8.85%) than 80.27% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for ARCH is significantly below the industry average of 60.43%.
  • The 3 year average ROIC (29.63%) for ARCH is well above the current ROIC(8.85%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 7.57%
ROE 12.43%
ROIC 8.85%
ROA(3y)29.78%
ROA(5y)16.37%
ROE(3y)59.38%
ROE(5y)18.66%
ROIC(3y)29.63%
ROIC(5y)N/A
ARCH Yearly ROA, ROE, ROICARCH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 100 -100 150

1.3 Margins

  • ARCH has a better Profit Margin (6.69%) than 75.51% of its industry peers.
  • In the last couple of years the Profit Margin of ARCH has grown nicely.
  • ARCH has a better Operating Margin (7.76%) than 62.59% of its industry peers.
  • ARCH's Operating Margin has improved in the last couple of years.
  • ARCH has a Gross Margin of 17.11%. This is comparable to the rest of the industry: ARCH outperforms 52.38% of its industry peers.
  • In the last couple of years the Gross Margin of ARCH has grown nicely.
Industry RankSector Rank
OM 7.76%
PM (TTM) 6.69%
GM 17.11%
OM growth 3YN/A
OM growth 5Y8.19%
PM growth 3YN/A
PM growth 5Y2.96%
GM growth 3Y61.46%
GM growth 5Y3.54%
ARCH Yearly Profit, Operating, Gross MarginsARCH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 60

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7

2. ARCH Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), ARCH is creating value.
  • ARCH has more shares outstanding than it did 1 year ago.
  • The debt/assets ratio for ARCH has been reduced compared to a year ago.
ARCH Yearly Shares OutstandingARCH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M
ARCH Yearly Total Debt VS Total AssetsARCH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

2.2 Solvency

  • An Altman-Z score of 4.29 indicates that ARCH is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.29, ARCH is in the better half of the industry, outperforming 65.99% of the companies in the same industry.
  • There is no outstanding debt for ARCH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.61
Altman-Z 4.29
ROIC/WACC0.79
WACC11.21%
ARCH Yearly LT Debt VS Equity VS FCFARCH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B

2.3 Liquidity

  • ARCH has a Current Ratio of 2.01. This indicates that ARCH is financially healthy and has no problem in meeting its short term obligations.
  • ARCH has a Current ratio (2.01) which is in line with its industry peers.
  • A Quick Ratio of 1.41 indicates that ARCH should not have too much problems paying its short term obligations.
  • ARCH has a Quick ratio (1.41) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.01
Quick Ratio 1.41
ARCH Yearly Current Assets VS Current LiabilitesARCH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

1

3. ARCH Growth Analysis

3.1 Past

  • The earnings per share for ARCH have decreased strongly by -64.17% in the last year.
  • The Earnings Per Share has been growing by 12.55% on average over the past years. This is quite good.
  • ARCH shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.03%.
  • Measured over the past years, ARCH shows a small growth in Revenue. The Revenue has been growing by 5.11% on average per year.
EPS 1Y (TTM)-64.17%
EPS 3YN/A
EPS 5Y12.55%
EPS Q2Q%-89.51%
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y28.94%
Revenue growth 5Y5.11%
Sales Q2Q%-17.02%

3.2 Future

  • Based on estimates for the next years, ARCH will show a decrease in Earnings Per Share. The EPS will decrease by -5.93% on average per year.
  • Based on estimates for the next years, ARCH will show a decrease in Revenue. The Revenue will decrease by -7.19% on average per year.
EPS Next Y-81.89%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
EPS Next 5YN/A
Revenue Next Year-19.02%
Revenue Next 2Y-9.78%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ARCH Yearly Revenue VS EstimatesARCH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B
ARCH Yearly EPS VS EstimatesARCH Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 20 40

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7

4. ARCH Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 13.13, which indicates a correct valuation of ARCH.
  • Based on the Price/Earnings ratio, ARCH is valued a bit cheaper than the industry average as 79.59% of the companies are valued more expensively.
  • When comparing the Price/Earnings ratio of ARCH to the average of the S&P500 Index (24.88), we can say ARCH is valued slightly cheaper.
  • The Price/Forward Earnings ratio is 6.77, which indicates a rather cheap valuation of ARCH.
  • Based on the Price/Forward Earnings ratio, ARCH is valued cheaper than 89.12% of the companies in the same industry.
  • The average S&P500 Price/Forward Earnings ratio is at 22.19. ARCH is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 13.13
Fwd PE 6.77
ARCH Price Earnings VS Forward Price EarningsARCH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 77.55% of the companies in the same industry are more expensive than ARCH, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, ARCH is valued cheaply inside the industry as 87.76% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 11.58
EV/EBITDA 6.26
ARCH Per share dataARCH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100

4.3 Compensation for Growth

  • The excellent profitability rating of ARCH may justify a higher PE ratio.
  • ARCH's earnings are expected to decrease with -5.93% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.05
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. ARCH Dividend Analysis

5.1 Amount

  • With a yearly dividend of 0.74%, ARCH is not a good candidate for dividend investing.
  • ARCH's Dividend Yield is a higher than the industry average which is at 1.19.
  • Compared to an average S&P500 Dividend Yield of 1.89, ARCH's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.74%

5.2 History

  • On average, the dividend of ARCH grows each year by 47.85%, which is quite nice.
  • ARCH has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)47.85%
Div Incr Years0
Div Non Decr Years0
ARCH Yearly Dividends per shareARCH Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

5.3 Sustainability

  • 50.86% of the earnings are spent on dividend by ARCH. This is a bit on the high side, but may be sustainable.
  • ARCH's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP50.86%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
ARCH Yearly Income VS Free CF VS DividendARCH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B
ARCH Dividend Payout.ARCH Dividend Payout, showing the Payout Ratio.ARCH Dividend Payout.PayoutRetained Earnings

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ARCH Fundamentals: All Metrics, Ratios and Statistics

Arch Resources Inc

NYSE:ARCH (1/13/2025, 8:04:00 PM)

After market: 133.13 -1.7 (-1.26%)

134.83

+0.94 (+0.7%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)11-05
Earnings (Next)02-13
Inst Owners99.38%
Inst Owner Change-100%
Ins Owners2.44%
Ins Owner Change0%
Market Cap2.44B
Revenue(TTM)2.68B
Net Income(TTM)179.45M
Analysts76.67
Price Target168.3 (24.82%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.74%
Yearly Dividend11.34
Dividend Growth(5Y)47.85%
DP50.86%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-64.92%
Min EPS beat(2)-78%
Max EPS beat(2)-51.83%
EPS beat(4)0
Avg EPS beat(4)-41.32%
Min EPS beat(4)-78%
Max EPS beat(4)-16.39%
EPS beat(8)1
Avg EPS beat(8)-25.89%
EPS beat(12)1
Avg EPS beat(12)-19.32%
EPS beat(16)2
Avg EPS beat(16)-17.53%
Revenue beat(2)2
Avg Revenue beat(2)4.61%
Min Revenue beat(2)3.07%
Max Revenue beat(2)6.14%
Revenue beat(4)4
Avg Revenue beat(4)7.09%
Min Revenue beat(4)3.07%
Max Revenue beat(4)11.78%
Revenue beat(8)8
Avg Revenue beat(8)8.31%
Revenue beat(12)12
Avg Revenue beat(12)10.33%
Revenue beat(16)16
Avg Revenue beat(16)11.04%
PT rev (1m)0%
PT rev (3m)-1.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-85.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-64.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-18.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.44%
Valuation
Industry RankSector Rank
PE 13.13
Fwd PE 6.77
P/S 0.91
P/FCF 11.58
P/OCF 6.2
P/B 1.69
P/tB 1.69
EV/EBITDA 6.26
EPS(TTM)10.27
EY7.62%
EPS(NY)19.9
Fwd EY14.76%
FCF(TTM)11.65
FCFY8.64%
OCF(TTM)21.75
OCFY16.13%
SpS148.03
BVpS79.73
TBVpS79.73
PEG (NY)N/A
PEG (5Y)1.05
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 7.57%
ROE 12.43%
ROCE 10.52%
ROIC 8.85%
ROICexc 10.16%
ROICexgc 10.16%
OM 7.76%
PM (TTM) 6.69%
GM 17.11%
FCFM 7.87%
ROA(3y)29.78%
ROA(5y)16.37%
ROE(3y)59.38%
ROE(5y)18.66%
ROIC(3y)29.63%
ROIC(5y)N/A
ROICexc(3y)35.22%
ROICexc(5y)N/A
ROICexgc(3y)35.22%
ROICexgc(5y)N/A
ROCE(3y)35.22%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y3.66%
ROICexc growth 3YN/A
ROICexc growth 5Y3.66%
OM growth 3YN/A
OM growth 5Y8.19%
PM growth 3YN/A
PM growth 5Y2.96%
GM growth 3Y61.46%
GM growth 5Y3.54%
F-Score5
Asset Turnover1.13
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.61
Debt/EBITDA 0
Cap/Depr 117.1%
Cap/Sales 6.83%
Interest Coverage 250
Cash Conversion 108.14%
Profit Quality 117.55%
Current Ratio 2.01
Quick Ratio 1.41
Altman-Z 4.29
F-Score5
WACC11.21%
ROIC/WACC0.79
Cap/Depr(3y)152.13%
Cap/Depr(5y)186.24%
Cap/Sales(3y)7.16%
Cap/Sales(5y)10.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-64.17%
EPS 3YN/A
EPS 5Y12.55%
EPS Q2Q%-89.51%
EPS Next Y-81.89%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y28.94%
Revenue growth 5Y5.11%
Sales Q2Q%-17.02%
Revenue Next Year-19.02%
Revenue Next 2Y-9.78%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A
EBIT growth 1Y-66.72%
EBIT growth 3YN/A
EBIT growth 5Y13.72%
EBIT Next Year-51.62%
EBIT Next 3Y-1.76%
EBIT Next 5YN/A
FCF growth 1Y-79.58%
FCF growth 3YN/A
FCF growth 5Y7.3%
OCF growth 1Y-66.1%
OCF growth 3Y118.27%
OCF growth 5Y8.74%

Arch Resources Inc / ARCH Fundamental Analysis FAQ

What is the fundamental rating for ARCH stock?

ChartMill assigns a fundamental rating of 6 / 10 to ARCH.


Can you provide the valuation status for Arch Resources Inc?

ChartMill assigns a valuation rating of 7 / 10 to Arch Resources Inc (ARCH). This can be considered as Undervalued.


How profitable is Arch Resources Inc (ARCH) stock?

Arch Resources Inc (ARCH) has a profitability rating of 8 / 10.


What are the PE and PB ratios of Arch Resources Inc (ARCH) stock?

The Price/Earnings (PE) ratio for Arch Resources Inc (ARCH) is 13.13 and the Price/Book (PB) ratio is 1.69.


How sustainable is the dividend of Arch Resources Inc (ARCH) stock?

The dividend rating of Arch Resources Inc (ARCH) is 3 / 10 and the dividend payout ratio is 50.86%.